Start with the E-2 eligibility and application overview
Ask who the nationality is traced to
A treaty enterprise must be at least half owned by nationals of the treaty country, and where the owner is a company the analysis follows the shares upward to the individuals who ultimately hold them. Canadian citizenship of both spouses is what carries this deal, not the fact that the holding company was incorporated in Ontario. Ask counsel to map the chain in writing, and note that a permanent resident who is not a Canadian citizen does not supply the nationality. Use passports, share registers, and any trust or holding-company documents to trace nationality without gaps. An Ontario corporate name does not settle nationality. If an owner is not a treaty national, decide before closing whether the ownership and control arrangement can still meet the treaty-enterprise test.
Ask whether the amount invested is substantial for this business
There is no minimum figure. The test is proportional: enough relative to the total cost of buying an established enterprise or of creating a viable one, and enough to show a real commitment to its successful operation. A service business with trucks, chippers and a customer list has a modest total cost, and a purchase price that covers essentially all of it will usually be substantial. The weakness in service acquisitions is not size but proof of what was actually paid and when. Price the investment against the actual acquisition cost, including equipment, inventory, lease obligations, and necessary opening expenses. The central question is whether the committed sum makes the enterprise viable, not whether it clears a borrowed headline number. Keep invoices, transfer records, and the closing statement together.
Ask whether the business will be more than a living
A marginal enterprise, one that exists only to provide a minimal living for the investors and their family, does not support E-2. Four existing employees and a contracted municipal route point the other way, but the point has to be evidenced: payroll, contracts, and a projection showing capacity to make a meaningful economic contribution. Ask the seller for three years of statements and payroll summaries rather than a summary the broker prepared. Test the operating forecast against payroll and signed work rather than optimism. An established crew can be strong evidence, while a business that only replaces the couple's personal income can be vulnerable. The buyers should decide whether they will retain staff, add capacity, or revise the plan before presenting projections.
Ask how the two of them will develop and direct it
The investor must develop and direct the enterprise, which ordinarily means at least half the ownership or operational control through a management position or another device. Two spouses holding the company between them satisfies ownership, but they should still be able to say who signs, who hires and who decides. If a foreman is to be brought in as an employee of the treaty enterprise, ask early whether he holds the same nationality and whether his role is executive, supervisory or genuinely essential. Write down authority after closing: banking access, hiring decisions, licence responsibility, and daily operations. The investors must retain meaningful operational decision authority, not simply hold shares while another person runs it. If a key employee will control the work, the governance documents should make the investors' authority intelligible.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.